Hyperinflation, Money Supply and the Consumer Price Index


Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What's hyperinflation?

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access

1. If a country has a money supply of 20 billion dollars, a real GDP of 100 billion dollars, and a price level of 1, then what's the velocity of money in this country?

2. How can government overspending cause hyperinflation?

Create your account to access this entire worksheet
A Premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

Economists have come to many conclusions about hyperinflation and the money supply. This quiz and worksheet combo will test your comprehension of the definition, causes, and effects of hyperinflation.

Quiz & Worksheet Goals

These assessments address the following concepts:

  • Why inflation happens
  • Economist Milton Friedman's beliefs about inflation
  • How to define hyperinflation
  • What theory economists use to explain the hyperinflation link

Skills Practiced

  • Making connections - use understanding of the concept of hyperinflation relating to the money supply
  • Information recall - access the knowledge you've gained regarding inflation theories
  • Knowledge application - use your knowledge about inflation to answer a practical scenario

Additional Learning

If you would like to delve deeper into this subject, check out the supplemental lesson called Hyperinflation, Money Supply and the Consumer Price Index. You will gather more information about the following topics:

  • Why hyperinflation happens
  • What factors determine inflation
  • Examples of the economic output formula